Factors affecting Gumhouria bank's profitability. Empirical evidence from biggest commercial bank in Libya

Abstract

The main purpose of this paper is to examine the factors affecting the profitability of (Gumhouria) bank in Libya, over the time period from 2000 to 2010. Return on equity (ROE) is used as profitability measures to determine the affect of internal and external factors on profitability. The descriptive, correlation and regression analysis results are derived with the help of SPSS. The results show that all factors (Portfolio Composition, Capital Adequacy, Deposits, Size, GDP, CPI), establish positive relation with profitability as measured by (ROE) in different significance.